If we take a quick look at all the median prices for existing
properties in Miami we realized that all of them climbed in double digits. The median price for an existing
Miami-Dade condo climbed 17.1 percent year over year to $175,000. April sales of single-family homes leaped 15.2 percent to 1,094 units in
Miami-Dade year over year. The increase came despite the 6.9 percent drop in
the number of single-family homes listed for sale in April which makes the behavior of the market way more imposing.
Sales of existing condos in Miami-Dade rose 18.7 percent from a
year earlier. The number of condo listings inched up 1.1 percent in April from
a year earlier, the Miami Realtors said. Still, with greater demand and more
sales flowing through the pipeline, the months of supply of existing condos on
the market in Miami-Dade dropped to 5.7 months in April from 6.1 months a year
earlier.
Real estate agents are surprised that the volume of sales has
continued to increase year over year despite the lack of inventory available to
sell. “After two record sales years coupled with very tight supply, it seemed
sales would not exceed last year’s activity. Yet Miami real estate sales appear
to be surging again,” Natascha Tello, chairman of Miami Realtors said in a
statement.
And with this shortage of inventory there are bidding wars.
People are paying above what the appraisal is coming back at. Many listing are
sold over asking price even when the property is not in its best condition. Listing agents are receiving multiple
offers over the listing price especially when the property is in prime location.
The good news is that this time a large share of all
transactions are cash and when the transaction is financed the mortgage leaders
are requiring solid substantial equity in the deal. *
Some notes taken from the Miami Herald.
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